Monument Mining Ltd V.MMY

Monument Sells Megapur

[romara]

Got it in my mail.... Richard

Monument Enters into Agreement
for Sale of Mengapur Project in Malaysia
 

Vancouver, B.C., January 10, 2021, Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or the “Company”) is pleased to announce that it has entered into a definitive Purchase and Sale Agreement (the “Definitive Agreement”) dated January 8, 2021 with Fortress Minerals Limited (“Fortress”) to sell Fortress a 100% interest in its Malaysian subsidiary, Monument Mengapur Sdn Bhd (“MMSB”), which owns a 100% interest in the Mengapur Copper and Iron Project (the “Mengapur Project”).

Cathy Zhai, President and CEO of the Company stated upon signing the Definitive Agreement: “I am very pleased to announce the signing of the Definitive Agreement for the Mengapur Project. This is a part of our corporate restructuring that will spin off the base metal project and allow us to focus on the development of our gold portfolios in both Malaysia and Western Australia”.

Fortress is incorporated in Singapore and listed on the Singapore Exchange (the “SGX-ST”) with its principal business in exploration, mining and production. Its primary iron ore operation is carried out in the state of Terengganu, Malaysia, as one of the top iron ore operations within the country. Under the terms of the Definitive Agreement Fortress will, in consideration for the shares of MMSB, pay the Company US$30,000,000 in cash and grant Monument a royalty of 1.25% of gross revenue on all products produced at the Mengapur Project (the “Transaction”).

Pursuant to a letter of intent signed on July 29, 2020 in relation to the Transaction, Fortress made a US$3.75 million deposit (the “Deposit”) to Monument under escrow to obtain exclusivity in conducting due diligence in respect of the Mengapur Project. The due diligence was completed on December 8, 2020 to Fortress’ satisfaction.  Upon signing of the Agreements, US$3 million of the Deposit shall be released to Monument from escrow. In addition, Fortress will pay Monument US$5.25 million held under escrow immediately, taking the total escrow balance to US$6 million (the “Further Payment”), which shall be released to Monument with the final payment of US$21 million together upon closing. The Further Payment may be released to Monument prior to closing should Fortress request an earlier start-up of the civil work at the Mengapur site. The Deposit and the Further Payment are only refundable subject to certain conditions in accordance with the terms of the Definitive Agreement.

The Transaction is subject to Fortress shareholders’ approval, SGX-ST approval, and other conditions set forth in the Definitive Agreement. The closing date is expected to be three months from the date of entering the Definitive Agreement.  The proceeds received shall be subject to a finder’s fee in the amount of US$600,000. The net proceeds from the Transaction shall be used for corporate and gold projects development.  

 

[romara]

Works out to just under CAD 0.12  per share.... just hope that shows up in the share price tomorrow .....  Richard

[Goldfinger007]

Total Cash 0,18 cad p share

[nozzpack]

Looks like my estimate of was very close. So, that adds another $40 million cad to our cash total which, upon closing,will stand at nearly $60 million. We also have 5 finished gold dores in our vault which will add another $12 million cad for a total cash and cash equivalent in excess of $70 million or about $0.22 per share.   Note that they have taken due regard for what we have been

[SilverNS]

Hey Nozz Why would we sell Murchison now?

[nozzpack]

Only if we get fair value which is $70 million. Otherwise, I am not against developing it, but that will take time and money. JVing it on a basis such that we get cash upfront and 50.1% ownership is another option or indeed merging it with another adjacent advanced asset. Developing BIOX is a good use for these cash funds too. Or giving the Murchison cash to us. You must fully understand the

[romara]

From the NR. ... They are going to put Murchinson into service ....  Richard Cathy Zhai, President and CEO of the Company stated upon signing the Definitive Agreement: “I am very pleased to announce the signing of the Definitive Agreement for the Mengapur Project. This is a part of our corporate restructuring that will spin off the base metal project and allow us to focus on the

[Teatimenow]

 my take on this is clear: yet another 100%+ likely even happening in this week - till friday. NEWS is sell of a non-core asset for more cash than marketcap. Still has a Gold-mine and other carried interest. But most important, totally unnoticed by the market they built a royalty portfolio. 1.25%GSR on Base Meal in addition to 30mUS$ Cash + 1% NSR on Australian project. They could now spin co

[oilgashappy]

With price of Cu and Iron, I was hoping for more than US$30m. With the price of gold, look like Murchison is going to be a decent buy. Even though Baldock paid too much at that time. OK, no more deal making by Baldock.

[nozzpack]

The future of Murchison could never be better.  60 greenfield prospects that have never been drilled in Burnakura and Gaby. Its almost certain that under every open pit from 100 m down to even 1250 meters have underground high grade gold of the like that WGX is minig in its 7 undeground mines. A few of these like NOA 78 have excellent grades down to at least 250 m and some of these pits

[Pinnacle]

This is no doubt in no small part due to your research too, nozzpack. Thank you.

[Pinnacle]

Does anybody have an estimate on what the royalty might be worth long term?

[Sharegar777]

 Have not carried out a precise calculation for Monument Mining, but decided to dive in at 12.5c. The $30M paid for Megapur matches the full MMY Mcap when SP was 9c.  Megapur was 3rd project in terms of priority and further to that we have the Royalty that will give cash flow, no doubt for years.  The fact we have $30M cash coming derisks our other plans in Malasia and we deserve a

[nozzpack]

All of the commodity prices are near all time highs for Mengaoher top products.....copper, gold and Iron ore. The price received undoubtedly was reflective of  a significant capital to build the mill and some infill drilling. At current prices, I would guess $100 m US might not be too unrealistic for annual revenues. This would generate $1.25 m US in cost less revenues per year

[Goldfinger007]

It appears to me that what all of this means to us is that the Mengapur project has the potential to generate revenues that will be much higher than $300 million per year. It could even be $500 or $600 million per year https://www.wallstreet-online.de/diskussion/1130522-16771-16780/monument-mining-ltd-wkn-a0msjr-goldproduzent-aus-kanada

[PaulKing]

I've kept this holding in my account for about 8 or 9 years only as a reminder to try hard not do something so stupid again! If history is any indication it will mean that the directors get richer, and/or their friends get finders fees or some other sweet deals. They will find a way to piss away the funds on "future prospects" of something or other officially. Don't hold your

[oilgashappy]

Kind of agree with you. But, hoping THIS TIME IS DIFFERENT

[romara]

PaulKing ..... You are so right

[nozzpack]

This time won't be the same. Dato is aboard with 55 million shares at an average of $0.37 cents. His interests are fully aligned with ours. We also have a vigilant Dissident Shareholfers Group holding majority of shares that can challenge and Twart any self indulgent move by management . Two moves so far have their origin as a result of that threat. Management are on performance time lines.

[ROCKETFUEL1]

This post has been removed in accordance with Community Policy

[nozzpack]

Mmy has had no investor awareness program for over a decade . Zilch. So we are abysmally unknown to investors . But, that too will change